A financial report that forecasts how much money will be available after paying expenses is a(n):
A) Income statement.
B) Balance sheet.
C) Cash flow statement.
D) Capital report.
E) None of these.

Question

Quizplus · Accepted Answer

A cash flow statement forecasts how much cash will be available after paying expenses, including operating expenses, investing activities, and financing activities. The income statement shows revenue and expenses over a specific period but does not take into account non-cash items or timing of cash flows. The balance sheet shows a company's assets, liabilities, and equity at a specific point in time but does not provide information on cash flows. The term "capital report" is not commonly used in financial reporting.

A Financial Report That Forecasts How Much Money Will Be